67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent. - Kentucky Statutes

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67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent. (1) Notwithstanding any of the other provisions of KRS 67.450 to 67.550, the county buildings commission may, by declaring its desire to do so, provide, in addition to
all of the other provisions authorized in KRS 67.450 to 67.550 in connection with
the issuance of its bonds, that such bonds shall be its general obligations and may,
in connection with the issuance of its bonds, execute a mortgage deed of trust in
favor of a trustee, providing that in the event of default by the commission in the
payment of interest or principal of its bonds or in the event of default of any other
covenant contained in such mortgage deed of trust the trustee, upon behalf of the
bondholders, may institute and carry through foreclosure proceedings, with the
property secured by the mortgage deed of trust put up for sale on foreclosure
proceedings, the proceeds of such sale to be used for the benefit of the bondholders.
In connection with such plan of financing, such provisions may be inserted in the
bonds themselves and in the mortgage deed of trust as may be necessary to protect
the bondholders and in order to make such bonds salable with the lowest net interest
cost to the commission. If the county buildings commission declares its intent by
resolution to follow the provisions of this section, and in order to do so it is
necessarily inconsistent that the provisions of any other section of KRS 67.450 to
67.550 be complied with, such other provisions of KRS 67.450 to 67.550 which are
necessarily inconsistent with the provisions of this section shall not be complied
with to the extent but only to the extent of such necessary inconsistency. If general
obligations of the county buildings commission are issued pursuant to the
provisions of this section, such obligations shall be general obligations only of the
county buildings commission as a public corporation and shall not be general
obligations of the individual members of such county buildings commission to any
extent. (2) It is the intent of this section to permit the county buildings commission, if it desires to do so, to issue obligations under this section which may also be secured in the
same way that obligations issued under the provisions of other sections of KRS
67.450 to 67.550 are secured, to the full extent that this may be done consistent with
the provisions of this section. History: Created 1962 Ky. Acts ch. 224, sec. 21.